Validity of valuation u/s 56(2)(viib) was questioned. The ...

Valuation under tax law: Estimation vs Actual - High Court upholds ITAT's view, remits case for fresh valuation.

Case Laws Income Tax

September 20, 2024

Validity of valuation u/s 56(2)(viib) was questioned. The Assessing Officer rejected the assessee's valuation report and framed the order based on actual figures, which was criticized by the CIT(A) and ITAT. The High Court observed that an estimation would be based on approximate evaluation and should not be questioned based on actual facts or figures. The correctness of an estimation should be tested on legitimate and valid assessment. While upholding the ITAT's view, the High Court remitted the matter to the Assessing Officer to undertake valuation afresh considering Section 56(2)(viib), adhering to the DCF Method. If the assessee's data warrants examination, the Assessing Officer can enlist an appropriate valuer's services.

View Source

← Previous Next →

Validity of valuation u/s 56(2)(viib) was questioned. The ...

Valuation under tax law: Estimation vs Actual - High Court upholds ITAT's view, remits case for fresh valuation.

Case Laws Income Tax

September 20, 2024

You may also like:

Valuation by DVO - addition based on estimated cost disregarding actual cost as per books - applicability of section 142A before amendment - non-rejection of books - AO...

Default u/s 201 - demand notices challenged by the petitioners on the ground that the tax that has been demanded as arrears of tax from the petitioners Tax Deducted at...

Procedure for identification and processing of cases for prosecution under Direct Tax Laws

Violation of principles of natural justice - petitioner was unaware of the impugned order due to notices being hosted on GST Common Portal, resulting in unawareness for...

Refund claim - inverted duty (GST) structure - If the Assistant Commissioner arrives at his satisfaction that the actual rate of tax on the input supplies made by the...

Petitioner challenged the impugned order alleging violation of principles of natural justice, being unaware of the order and preceding notices, and discrepancy between...

The case pertains to recovery of arrears of tax for Assessment Years 2017-2018 and 2018-2019 due to non-filing of returns. The petitioner had previously suffered...

Assessment orders quashed due to petitioner's illness, remanded for fresh orders. Petitioner directed to file consolidated reply within 30 days. Cases remitted to...

Legal representative potentially liable for tax u/s 93 of CGST Act, 2017. Petitioner claimed non-liability as business not taken over from late father. Court quashed...

Penalty levied u/s. 272A (1)(c) - non compliance with summons issued under section 131(1A) - ignorance of law is certainly no excuse for a default committed but, at the...

Validity of Assessment order u/s 147 r.w.s. 144B - Procedural Irregularities - The Court agreed with the petitioner that the show cause notice appeared to be a draft...

Withdrawing the excess tax credit for advance tax and self-assessment tax - Rectification u/s 154 - The assessee has to furnish details of different payments of tax by...

Reference to Departmental valuation officer [DVO] without first rejecting the books of accounts - The Court reiterated the importance of rejecting the books of accounts...

Valuation - Once the Sales Tax department has assessed the Sales Tax as paid, the Central Excise department cannot contend that since the State Government has remitted...

CESTAT address the issue of revision in duty liability of 'antenna' regarding assessable value under Customs Valuation Rules. The tribunal found flaws in the...

Quick Updates: